Hollister
– Hollister School District officials hope to establish a
nonprofit foundation and endowment fund that will support special
programs and after-school activities the district might not
otherwise be able to afford.
Hollister – Hollister School District officials hope to establish a nonprofit foundation and endowment fund that will support special programs and after-school activities the district might not otherwise be able to afford.
“This is something we’ve been talking about for a year and a half or two,” Trustee Alice Flores said. “But I think this is really the right time to be moving forward.”
Government institutions like cities or school districts are often excluded from valuable grants, regardless of financial need or what the money would be spent on. Privately run, nonprofit foundations, however, are fair game, and can obtain funding on behalf of the district as well as accept donations from private sources.
“I think this is something that a lot of people are excited about,” Flores said.
HSD is working closely with the Community Foundation of San Benito County, which Executive Director Gary Byrne said has already helped numerous local nonprofits establish their own endowment funds, including the Community Pantry, a local youth soccer league, the E3 Foundation, and Southside Elementary and San Benito High Schools.
“Endowments really are the future of public and parochial schools. They’re about long-term thinking,” Byrne said.
When a nonprofit establishes an endowment fund, it agrees not to use any of the principal in the fund, only the interest. It can take several years, then, for the endowment to start funding major projects, but it’s a near guarantee that more money will be available every year.
“You look at schools like Stanford and Santa Clara University that knew the value of endowments 25 and 30 years ago, and now they have billions of dollars in principal,” Byrne said. “And our donors really like it when we can tell them that their gift will keep giving, that their memory and name will live on long after they’ve left this Earth.”
Byrne added that the flexibility of these funds is ideal for small nonprofits.
“In the past these organizations have struggled just to keep their doors open, but with an endowment you can put a little more away during a good fundraising year and use a little more of your interest during a slow one.”
Flores suggested a laundry list of projects and programs that could benefit from the advent of an HSD foundation, including literacy development programs; city athletic teams; and drama, music and speech opportunities.
“Really there are as many opportunities as we have ideas,” she said.
HSD staff are currently researching the ins and outs of forming a nonprofit, and Superintendent Ron Crates will be reporting his findings to the board at its September meeting. The nonprofit could materialize as soon as six months from now or take the better part of the year, and organizers will need to come up with $10,000 to officially start the endowment.
“This could be a wonderful thing for Hollister School District,” Byrne said. “A lot of people know how important education is; it’s one of the top three causes people donate to. … They know they’re not just helping their children, but their great-grandchildren’s generation.”
Danielle Smith covers education for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected].
